The Future Houston Zoo STRATEGIC PLAN | MASTER PLAN | BUSINESS PLAN Table of Contents

INTRODUCTION 4 Letter from President and Board Chair 6 Mission, Vision, and Guiding Principles

STRATEGIC PLAN 8 Strategic Priorities

MASTER PLAN 42 Overview 48 Phase 1 60 Future Phases

BUSINESS PLAN 64 Introduction 68 Objectives and Attendance 70 Admission 72 Revenues and Expenses

PLANNING 74 Planning Process and Participants INTRODUCTION, Letter from President and Board Chair

Introducing the new direction of the Houston Zoo A ZOO IN TRANSFORMATION our Board of Directors, staff, volunteers and community thought leaders, we engaged scores of people in the process of shaping plans for the Houston Zoo’s future. Every year more than 2.5 million visitors enjoy the Houston Zoo. They discover more than 6,000 animals of over 800 To maintain momentum and to respond to the urgent need for our work, we ambitiously species that represent the extraordinary variety of life on Earth. Our dedicated staff works around the clock to make combined and consolidated three distinct planning and visioning processes to define sure that the Houston Zoo is running smoothly for the safety and well-being of every animal and guest in our 55-acre and articulate our strategic direction, business operations and facility development. campus, set within beautiful Hermann Park in the heart of Houston. The Zoo has become one of the region’s most The results are a bold, six-year Strategic Plan for the Houston Zoo to clarify our vision and direction, a Business Plan to guide sustainable management of our resources successful and beloved cultural institutions. and finances, and a long-range Facilities Master Plan that outlines a sequence of physical transformations of the Zoo for our guests, for the animals in our care, and For many animal species and populations around the world, however, time is running mentioned is that the failure to act more forcefully and effectively will threaten the for the communities we serve, here in Houston and around the globe. out. The number of vertebrate land animals on our planet has been reduced by business model and ‘social license’ that allow our institutions to exist and thrive.” more than half since 1970, and there have been even greater losses of animal These integrated plans create a trajectory of transformational advancement that will Here at the Houston Zoo, we recognize that protecting the natural world is a life in the world’s oceans. The mainstream view of peer-reviewed science predicts make the Houston Zoo a model zoo of the future. By the Houston Zoo’s centennial collective task in which everyone can take part. We look for every opportunity to extraordinary continued loss of plant and animal species. Although major extinction celebration in 2022, significant improvements will be achieved throughout the Zoo increase our impact and effectiveness. We support long-term solutions that promote events have been part of our planet’s history, what is alarmingly different this time is and our programs. We aim to inspire our public to form a deeper commitment harmony between animals and people, in experiences here at the Houston Zoo the extremely accelerated rate of extinctions, and the fact that this event is the result to wildlife and nature, and help influence people’s behaviors so they can take and in outreach that extends worldwide. We are acutely aware that we cannot of human activity. concrete action to help save animals, here in our region and around the world. do this acting alone. Instead, the Houston Zoo works to save animals in the wild In response to the looming extinction crisis, zoos and aquariums have undergone by partnering with like-minded organizations and people. With our conservation Enthusiastically approved by the Board and embraced by staff, these interconnected a major shift in focus-- indeed the very reason for the existence of good zoos and partners, we are both expanding our reach and sharpening our focus on saving plans are living documents that will evolve as the Houston Zoo looks to lead aquariums has changed. It is no longer enough to simply provide recreational and wildlife, locally and globally. in a rapidly changing world. We believe in the power of collaboration and educational experiences for people. Today’s zoological institutions must play an will continue to seek partners who also want to make a positive impact for our Thanks to enthusiastic community support, the Zoo has been a very special place in active role in efforts to save animals in the wild. This is now universally accepted, as community, wildlife, and the natural world. articulated in the recently-adopted global zoo and aquarium conservation strategy Houston for 95 years. It is a place of enjoyment, recreation and discovery. Beyond (“Committed to Conservation”) simply showcasing a wide variety of animals, Houston Zoo has long been a center for Key to implementation of the Strategic Plan is the Facilities Master Plan, a 20+ of the World Association of innovative and inspirational education programs designed to instill the importance year roadmap for cohesively developing innovative animal environments, site Zoos and Aquariums (WAZA), of living in balance with the natural world. We are a dynamic conservation center infrastructure, and guest services and amenities on our entire 55-acre campus. a seminal document that the ...zoos and aquariums, working to help save animals from extinction. Because of our successes to date, the The Master Plan prioritizes continued capital investments and our commitment Houston Zoo played a significant “ support of our community, our work in animal care, education and conservation, to operate the Houston Zoo sustainably, both fiscally and environmentally. role in developing, producing with their enormous the expertise of our staff, volunteers and countless partners, and the urgent need to Underpinning the Strategic and Master Plans is a Business Plan that outlines the conserve species and their habitats locally and globally, the Houston Zoo is poised and disseminating. To quote global audiences, are capital and operational funding and business practices needed to achieve the from the WAZA Strategy, “… for continued leadership as a zoo-based conservation organization. Houston Zoo’s strategic objectives. zoos and aquariums, with their uniquely qualified to In order to set direction and priorities, focus our work to achieve meaningful results, We invite you to join us on this journey. Together we will make our Houston Zoo— enormous global audiences, inform our daily decision-making, and communicate our exciting vision for the and by association the City of Houston and our many partners—a leader in the are uniquely qualified to effect effect positive change. Houston Zoo to the many stakeholders upon whose support we depend, in 2016 we global movement to save wildlife. STACY METHVIN LEE EHMKE positive change. Less frequently embarked on the most intensive and inclusive planning process in our history. From ” Houston Zoo Board President President & CEO 4 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 5 INTRODUCTION, Mission, Vision, and Guiding Principles

Mission, Vision and Guiding Principles The growing challenges to the survival of wildlife and wild places necessitates a re-definition of the purpose of contemporary zoos and aquariums. Our new mission, vision and guiding principles form a powerful response to the challenges ahead, as the Houston Zoo looks toward its Centennial Anniversary in 2022 and beyond.

Guiding Principles

• Be a zoo for all

• Provide exemplary animal care; assure animal welfare

• Deliver an outstanding, inspiring guest experience VISION • Be a workplace that provides staff development and instills MISSION empowerment, respect and teamwork

Connect communities with Be a leader in the global • Provide smart and fun education and learning opportunities animals, inspiring action to movement to save • Promote saving wildlife awareness and action save wildlife. wildlife. • Apply best business practices and sound financial management • Inspire broad community support and collaborations

• Ensure safety for guests, staff and the animals in our care

• Operate sustainably to conserve resources; lead by example

• Change behaviors to help protect wildlife through engaging experiences that connect people

6 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 7 STRATEGIC PLAN, Strategic Priorities

DEVELOP A “SAVING WILDLIFE” BRAND BE A WORKPLACE OF CHOICE Continue to grow the Houston Zoo’s leadership in creating Highlight how important every job at the Houston Zoo is to strategies, programs and partnerships to save animals in the fulfilling the organization’s mission, provide opportunities for The Houston Zoo’s newly-redefined mission articulates wild--locally, regionally and globally. Be a bold voice for wildlife, professional staff development and training and recruit and retain our focus on connecting communities with animals, communicating to the communities we serve the importance of this the talent needed across all departments. Be a workplace of work. The Houston Zoo will be a leader in saving wildlife, and our choice in the Houston region and zoological community. Support inspiring action to save wildlife. It guides us toward brand will be synonymous with this leadership. a culture of innovation and organizational excellence, and invest realizing our vision to lead the global movement to save in our people. wildlife as we approach the Houston Zoo’s centennial anniversary in 2022. CREATE MEANINGFUL EXPERIENCES DELIVER WORLD-CLASS GUEST EXPERIENCES Create meaningful experiences at the Houston Zoo that inspire Create memorable experiences for guests of all ages, anticipate The success of the Houston Zoo is the sum of a complex, our guests to take action to save animals in the wild. Engage their needs and exceed their expectations, creating value and guests of all ages in order to help them make informed decisions thereby maximizing earned revenue in support of the Zoo’s interconnected set of parts. These include the in their relationships with living animals and the ecosystems upon mission. Maintain excellence in guest engagement and guest extraordinary animals in our care (and the remarkable which all life depends. services, including: safety, security, comfort, ease of access, staff who provide that care); our global and regional ease of viewing animals, food quality and selection, horticultural diversity, overall ambience and retail opportunities. conservation projects and partnerships; learning opportunities that teach and inspire people of all ages; ADVANCE CONSERVATION EDUCATION OPERATE SUSTAINABLY TO BENEFIT THE our commitment to provide a best-in-class visitor Demonstrate the Houston Zoo’s leadership in offering innovative ENVIRONMENT experience; our role as a community partner; being an and inspirational educational programs and experiences to teach Houston Zoo operations will be designed to minimize economic engine in the Greater Houston region; and how natural environments function and how human beings can environmental impact, to conserve natural resources and to manage behavior and ecosystems to live sustainably. Be a leader lead and inspire sustainability practices by guests, community being an employer of choice to attract and retain the in conservation education by offering experiential programs organizations and businesses. most talented professionals in their fields. delivered at the Houston Zoo and in the community.

Reflecting this complexity, the strategic priorities set out in this plan are aspirational yet attainable, supported by ENSURE THE HIGHEST QUALITY OF LIFE FOR ANIMALS MAINTAIN AND IMPROVE SUSTAINABLE FINANCIAL SYSTEMS AND SOUND BUSINESS PRACTICES goals and measurable objectives that will guide annual Maintain intensive focus on animal care, welfare and well-being; provide modern facilities and practices for comprehensive Encourage economic development and community partnerships, work plans and inform operational practices as we work veterinary care; and support scientific advancement in animal sound business planning and responsible financial management, to transform the Houston Zoo. welfare and conservation. Every animal at the Houston Zoo and best practices for financial practices in order to ensure the will experience the highest quality of life through mission-driven Houston Zoo’s resiliency in operations, create economic value collection planning and a well-supported animal care, health and and help build a stronger Greater Houston Community. welfare program. 8 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 9 “ The wildlife and its habitat cannot speak, so we must and we will.” ­— THEODORE ROOSEVELT

10 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 11 STRATEGIC PLAN, Strategic Priorities, Cont.

DEVELOP A “SAVING WILDLIFE” BRAND

The Houston Zoo will be a leader in saving wildlife and GOAL 1 GOAL 3 Strategy 3.1: Increase visitor and general public awareness that a Zoo our brand will be synonymous with this leadership. Strategy 1.1: Grow wildlife-saving activities (Field conservation and Take visit helps save animals in the wild. Action) so that the primary regions from which the Zoo’s animal collection GOAL 1 originates (and that planned exhibit concepts highlight) are the subject of Strategy 3.2: Evaluate the Zoo’s visual brand elements, including logo, conservation programs we operate or support. Expand, improve and increase the number of projects and initiatives that tagline and messaging for consistency with and support of our desired brand identity. use innovative solutions for sustaining and restoring animal populations and Strategy 1.2: Align field conservation projects/Take Action programs with protecting wild places in key global regions. the Zoo’s Master Plan exhibit concepts, animal collection plan, and public Strategy 3.3: Focus on single-use plastics as a headline Take Action events and communications efforts. initiative. At the same time, grow the other identified initiatives. GOAL 2 Strategy 1.3: Highlight Texas regional conservation programs to inspire Strategy 3.4: Strengthen connections between our staff, volunteers and Influence behavior change that leads to the protection of wildlife and wild places. and motivate our local community to develop stronger connections to wildlife board to our field conservation partners. and to bolster the Zoo’s credibility as a conservation organization. GOAL 3 Strategy 3.5: Create emotional connections with our visitors through Strategy 1.4: Maintain and enhance zoological community leadership in storytelling. Align the Zoo’s brand and mission to deepen connections with community. allocation of financial and human resources to support wildlife conservation. Strategy 3.6: Coordinate Zoo external communications for consistency Strategy 1.5: Be a model for the zoological community in the development and effectiveness of message. of an internal conservation culture and be a resource for connecting institutions with wildlife-saving programs. Strategy 3.7: Increase use of digital marketing and social media channels to engage specific audience segments.

GOAL 2 Strategy 3.8: Seek external partnerships with people who can help us Strategy 2.1: Serve as a resource for wildlife-saving information and tell our story. action for our community. Strategy 3.9: Weave saving animals messaging into announcements Strategy 2.2: Collaborate with conservation partners on behavior change and marketing campaigns. campaigns. Strategy 3.10: Celebrate our Centennial Anniversary in 2022. 12 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 13 “ People never learn anything by being told, they have to find out for themselves.” ­— PAULO COELHO

14 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 15 STRATEGIC PLAN, Strategic Priorities, Cont.

CREATE MEANINGFUL EXPERIENCES

Create meaningful experiences on Zoo grounds that GOAL 1 inspire our guests to take action to save animals in Strategy 1.1: Through the Master Plan and other capital improvement projects we will create opportunities to bring the animals to the front of the the wild. habitats, closer to the guests. This includes new opportunities for guests to feed animals, unique photo opportunities and platforms for staff (including GOAL 1 keepers) to interact with both the animals and the guests.

Build opportunities into new and renovated animal habitats to create closer Strategy 1.2: Utilize creative, artistic and interactive experiences to connections with wildlife that facilitate positive emotional experiences. engage guests and provide opportunities to learn about the zoo animals and mission. GOAL 2 Utilize staff and volunteers to proactively engage guests, facilitating bonds GOAL 2 between them and animals and connecting them to the zoo mission. Strategy 2.1: Position staff at each animal area for constant interaction with guests. This would be done with a combination of full time staff, volunteers, GOAL 3 rangers and keepers.

Use Sight, Sound, Smell and Touch to fully engage our guests. Strategy 2.2: Train all Houston Zoo representatives--including staff, volunteers and food/retail partner employees--to be fully engaged as ambassadors of the Zoo’s mission.

GOAL 3 Strategy 3.1: At each animal habitat utilize creative opportunities to engage the guests using multiple senses.

16 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 17 “ Teaching children about the natural world should be treated as one of the most important events in their lives.” ­— THOMAS BERRY

18 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 19 STRATEGIC PLAN, Strategic Priorities, Cont.

ADVANCE CONSERVATION EDUCATION

Be a leader in conservation education, offering GOAL 1 GOAL 4 experiential programs delivered in the Zoo and in Strategy 1.1: Create a document that is the roadmap to a successful Strategy 4.1: Be the experts in telling the stories of our animals and program and use these principles to filter through all current and new conservation partners. the community. programs. Strategy 4.2: Design a Zoo-wide interpretation plan. GOAL 1 Strategy 1.2: Develop programming for all ages to have the opportunity to partner with us in saving wildlife. Provide a continuum of learning from birth through adulthood to engage all GOAL 5 program participants in educational programming to inspire saving animals in Strategy 5.1 Develop methods to evaluate change in behavior to help the wild. GOAL 2 save wildlife for all conservation education programs. Strategy 2.1: Connect teenagers to nature both locally and globally through Zoo programming. Strategy 5.2: Continue the ethic of using evaluation techniques to inform GOAL 2 all program development. Cultivate the next generation of conservation heroes. Strategy 2.2: Immerse teens in the belief that they choose any career in life and be active in saving wildlife.

GOAL 3 Strategy 2.3: Empower teens to make conservation action mainstream Inspire our school group audiences to partner with us to save wildlife. within their communities.

Strategy 2.4: Foster partnerships with local universities to engage college- GOAL 4 aged students and professors in saving wildlife. Share our conservation messages effectively and creatively so that Zoo guests change their behaviors to save animals in the wild. GOAL 3 Strategy 3.1: Pre-scheduled school group engagement involved in GOAL 5 saving wildlife. Create a culture of evaluation-based decision-making to increase effectiveness in order to change participant’s behavior toward actions that save wildlife.

20 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 21 “ The greatness of a nation and its moral progress can be judged by the way its animals are treated.” ­— MAHATMA GANDHI

22 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 23 STRATEGIC PLAN, Strategic Priorities, Cont.

ENSURE THE HIGHEST QUALITY OF LIFE FOR ANIMALS

Every animal at the Houston Zoo will experience the GOAL 1 GOAL 3 highest quality of life through mission-driven collection Strategy 1.1: Set the standards of excellence in animal care, health and Strategy 3.1: Enhance the impact of the Houston Zoo Animal Care, welfare through benchmarking with professionals, institutions and existing Health and Welfare Program, ensuring its place as a leader in the zoo planning and a well-supported animal care, health and programs within the global zoo community and beyond, as preparation community, through best practices evaluation and training. welfare program.. for creating a comprehensive program with measurable standards for our institution. Strategy 3.2: Share Houston Zoo best practices in animal care, health and welfare locally and globally in order to fulfill the responsibilities of GOAL 1 Strategy 1.2: Develop a monitoring system that includes assessment tools a modern conservation organization and community leader that cares Create and manage an adaptable, proactive animal care, health and welfare and strategies to measure life-long animal health, care and welfare at the for animals. program to ensure the best quality of life for each animal in the zoo. Houston Zoo.

Strategy 1.3: Increase capacity to support best practices for outstanding GOAL 2 evidence-based animal care, health, and welfare program at the Houston Zoo. Create a living and evolving Collection Plan through comprehensive selection Programs will require capacity/support for data collection, implementation, criteria that align with the Zoo’s mission, vision, master plan, SSPs, TAGs, interpretation, measurements and overall management. Care | Foundation of basic requirements that includes Physiological conservation strategies, and messaging priorities. The practice of vetting species needs (shelter, clean water, and sanitary living conditions). through these criteria and adhering to the collection plan will help ensure the GOAL 2 Houston Zoo will be synonymous with saving animals in the wild. Strategy 2.1: Create a species selection tool that will be used to evaluate Health | Veterinary Care (disease free, injuries treated, proper the role of all current and future animal residents of the Houston Zoo. nutrition) and Safety Needs. GOAL 3 Strategy 2.2: Create a Collection Plan that explains the roles and functions The Houston Zoo will be a global resource for maintaining the highest standards that each individual species plays in the Houston Zoo Mission, Vision, | Fostering of Social Needs, Mental Stimulus, and Choice. of animal care, health and welfare. Welfare Conservation Strategies and Master Plan. The collection plan will guide the animal care department efforts and be the document that justifies the “why” Care, Health and Welfare combined, create wellness and well-being for we house a species and will outline our holdings and contributions to AZA every zoo animal. and the greater WAZA Zoo community.

24 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 25 “ Sustainability includes how you run your business, and my bottom line includes how you treat your people. Sustainability starts with your staff.” ­— TOM DOUGLAS

26 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 27 STRATEGIC PLAN, Strategic Priorities, Cont.

BE A WORKPLACE OF CHOICE

Be the workplace of choice in the Houston region and GOAL 1 zoological community. Support a culture of innovation Strategy 1.1: Ensure that staff feels the Houston Zoo and their position is synonymous with saving animals in the wild. and organizational excellence, and invest in our people to help save nature. Strategy 1.2: Foster an environment of communications and collaboration among teams and within departments. GOAL 1 Build a united culture of inspirational purpose and mutual respect. GOAL 2 Strategy 2.1: Create a targeted recruiting process that identifies specific GOAL 2 skill set/technical skills, competencies, and cultural fit by position. Build a reputation that attracts, engages and retains top talent from the national Strategy 2.2: Ensure that the zoo’s workforce is compensated competitively zoo and aquarium community and the Greater Houston marketplace. within the Houston region.

Strategy 2.3: Build an integrated talent management program that fosters employee development, engagement and enrichment.

Strategy 2.4: Create opportunities to enhance expertise and share knowledge with zoological and scientific communities.

Strategy 2.5: Improve staff services, incentives, parking, and support areas reflective of the highly performing zoo.

28 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 29 “ Your customer doesn’t care how much you know until they know how much you care.” ­— DAMON RICHARDS

30 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 31 STRATEGIC PLAN, Strategic Priorities, Cont.

DELIVER WORLD-CLASS GUEST EXPERIENCES

Maintain excellence in guest engagement and effective GOAL 1 GOAL 4 guest services, including: Optimize guest safety, security, Strategy 1.1: Upgrade the existing Zoo mobile app to create a functional Strategy 4.1: Transform and design exhibits into captivating habitats that tool for guests to utilize in planning their visit and providing useful information will excite and connect Zoo guests to animals and places they may not ever comfort, ease of access, ease of viewing animals, food on Zoo grounds. be able to experience otherwise. quality and selection, horticultural diversity, ambience Strategy 4.2: Focus on guest comfort and amenities in the master planning and shopping. GOAL 2 process. Strategy 2.1: Build a stronger working relationship with Hermann Park to Strategy 4.3: Provide unique culinary dining experiences that celebrate GOAL 1 have more collaboration on opportunities. the Zoo’s local heritage. Build overall master framework that allows technology use to enhance Zoo guest Strategy 2.2: Build a stronger relationship with Texas Medical Center experiences. (TMC) to work on issues related to traffic and off-site shuttle service.

GOAL 2 GOAL 3 Improve guest arrival experience to the Zoo through partnerships with Zoo Strategy 3.1: Provide a sustained Guest Enrichment Staff Training Program. neighbors. Strategy 3.2: Create a Guest Enrichment Training for all on-site partners.

GOAL 3 Strategy 3.3: Enhance guest experience through dedicated staff providing Deliver the best guest experience in Houston. storytelling and interactions with zoo visitors throughout the zoo.

GOAL 4 Provide experiences and amenities that are world class and set the industry standard. Our exhibit design, comfort amenities and overall guest experience will exceed all industry “norms.”

32 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 33 “ Small acts, when multiplied by millions of people, can transform the world.” ­— HOWARD ZINN

34 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 35 STRATEGIC PLAN, Strategic Priorities, Cont.

OPERATE SUSTAINABLY TO BENEFIT THE ENVIRONMENT

Operate the Zoo to protect and conserve natural GOAL 1 resources and to lead and inspire sustainability Strategy 1.1: Identify components of LEED and other “green” building guidelines to improve efficiency of new construction to address energy, water, practices by guests and other community organizations and natural gas consumption, and sustainable building practices. and businesses. Strategy 1.2: Identify components of LEED and other “green” building guidelines to retroactively fit existing buildings to address energy, water, and GOAL 1 natural gas consumption, and sustainable building practices. Implement innovative programs for sustainable resource use. Strategy 1.3: Identify, prioritize, and implement energy conservation measures.

GOAL 2 Strategy 1.4: Identify, prioritize, and implement water conservation measures. Establish a highly efficient, multifunctional waste reduction facility and system that enables zoo-wide recycling. GOAL 2 Strategy 2.1: Establish a recycling system that aligns with Zoo operations. GOAL 3 Strategy 2.2: Engage the zoo staff and guests in recycling program Reduce Zoo animal waste being disposed of in landfills, with a target of 100% participation. of usable animal waste being composted by 2021. Strategy 2.3: Develop long term/low impact partnerships.

GOAL 3 Strategy 3.1: Develop business relationships to help support the logistics of the program.

Strategy 3.2: Implement new programs to continue to reduce the amount of usable animal waste going to landfills. 36 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 37 “ There are only three measurements that tell you nearly everything you need to know about your organization’s overall performance: employee engagement, customer satisfaction, and cash flow.” ­— JACK WELCH

38 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 39 STRATEGIC PLAN, Strategic Priorities, Cont.

SUSTAINABLE FINANCIAL SYSTEMS AND SOUND BUSINESS PRACTICES

Operate in a financially-sustainable manner through GOAL 1 GOAL 3 innovative business and operational practices.. Strategy 1.1: Optimize attendance based revenue. Strategy 3.1: Define why business intelligence is needed for data-driven decision making. Strategy 1.2: Review potential increase or decrease in operating hours to GOAL 1 maximize net income by 2019. Strategy 3.2: Use business intelligence for data driven decision making. Maintain and grow operating cash flow by optimizing revenue and controlling costs. Strategy 1.3: Set up an outbound group sales effort in 2017. Strategy 3.3: Creating an innovative and green business environment.

GOAL 2 Strategy 1.4: Add revenue opportunities by connecting guests with animals. Increase operational and restricted programmatic support by connecting our Strategy 1.5: Review operations for maximum efficiency and cost philanthropic community more closely to our mission. containment.

GOAL 3 GOAL 2 Leverage investment in technology to provide information and analysis for Strategy 2.1: Complete quiet phase of the Centennial Campaign by the decision makers and support innovative and sustainable business operations. end of 2017.

Strategy 2.2: Build the permanent endowment to provide long-term sustainable income.

Strategy 2.3: Increase annual unrestricted operational giving.

Strategy 2.4: Grow restricted giving for programmatic support.

40 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 41 Master Plan Overview The new Master Plan for the Houston Zoo—which will be executed in phases over the next 20 years—calls for a variety of changes across our Zoo. To provide a stronger sense of coherence, the campus will be reconfigured into a series of experiential zones focusing on distinct themes. Each zone will tell stories about wildlife and ecosystems from a particular part of the world or about groups of endangered animals that need our help, providing meaningful and engaging experiences at every turn. Major new exhibits and guest amenities will be added, while important existing facilities and features (including several large groves of mature oak trees) will be retained and improved. Conservation messaging will be integrated into every exhibit and augmented by programs informing and inspiring visitors about what they can do to save animals, all while having fun. The end result will be a much more intensive, immersive, and impactful experience for our guests, as well as optimal living environments and support areas for our animals and staff.

42 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 43 MASTER PLAN, Overview

ALIGNMENT OF MASTER PLAN AND STRATEGIC PRIORITIES LEGEND

EXHIBIT AREA

SERVICE AREA DEVELOP A “SAVING WILDLIFE” BRAND BE A WORKPLACE OF CHOICE WATER PARKING As part of fundraising for the Phase 1 projects in the Master Plan, The Master Plan projects will result in improved institutional The components of the Master GARAGE SPECIAL LAWN AREAS we will raise at least $5 million to be committed to support field reputation, helping to attract and retain top talent. The Plan also Plan have been selected LANDSCAPE conservation programs directly linked to these new exhibits. In incorporates upgraded staff amenities (meeting spaces, work JOHN P. McGOVERN VETERINARY CENTRAL SPINE addition, the holistic messaging of the habitat-based approach of areas, employee café etc.), and the proposed spatial realignments and designed to support the CHILDREN’S ZOO: TEXAS! CLINIC VISITOR PATHWAY VISITOR PATHWAY the Master Plan will make our conservation brand ubiquitous and will encourage efficiency and cross-departmental operations. Priorities identifiedT in our visible to all our guests. EE RETAIL, RENTALS, TR WEST OR EVENTS S FOOD E STORAGE StrategicG Plan ENTRY PANTANAL NATURE PLAY ID R COMMISSARYCOM B CREATE MEANINGFUL EXPERIENCES DELIVER WORLD-CLASS GUEST EXPERIENCES M FOOD A C WEST ADMINISTRATION TOILETS New exhibits will provide intimate viewing and interactive New developments will facilitate improved guest comfort, THE GROVE opportunities, including animal feeding and contact, photo convenience, interactions with staff, dining, shopping and AFRICA CE BUILDINGS N T opportunities, staff presentations and engagement platforms, multi- navigation. The exhibits themselves will be unique, exciting and R MESH ENCLOSURE A media experiences and many points of staff/guest engagement. industry-leading. L ANIMAL TRANSFER S P I N E CYPRESS ADVANCE CONSERVATION EDUCATION OPERATE SUSTAINABLY TO BENEFIT THE CIRCLE In addition to the rich interpretive content offered by the new ENVIRONMENT ANCIENT RELATIVES: exhibits, many built-in areas will enhance staff interactions with All new development will incorporate best practice water GORILLAS OF THE CE BIRDSBIR & REPTILES NTRA GALAPAGOS AFRICAN FOREST L guests and education program participants. and power conservation systems. We will develop improved SP ISLANDS IN E recycling facilities and processes, and all new buildings will meet or exceed LEED standards. KIPP NORTH AQUARIUM REFLECTIONS ENTRY ENSURE THE HIGHEST QUALITY OF LIFE FOR ANIMALS MAINTAIN AND IMPROVE SUSTAINABLE FINANCIAL ASIAN New and renovated facilities will create better homes for key SYSTEMS AND SOUND BUSINESS PRACTICES AFRICA ISLANDS species already at the Zoo (sea lions, birds, sea turtles, bears, New projects will drive attendance and increase earned revenue, orangutans, tortoises, iguanas, tapirs, birds, jaguars) as well with more and better event rental venues; higher food and gift per MADAGASCAR H as providing excellent care for added species. All exhibits will caps based on increased capacity and quality; increased admission ER MA NN encourage natural behaviors and facilitate enrichment activities. revenues tied to new attractions; “value-added” animal interactions PA RK DR (giant tortoise feeding, sea lion behind the scenes etc.). The Capital IVE BROWN Campaign that will be launched to build Phase 1 of the Plan will ASIAN EDUCATION ELEPHANTS CENTER broaden and deepen community support for Zoo going forward.

Scale: 1”=50’ 44 HOUSTONTHE HOUSTON ZOO ZOO - MASTER | WWW.HOUSTONZOO.ORG PLAN HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 45 January 12, 2017 Studio Hanson|Roberts MASTER PLAN, Overview, Cont.

SITE ORGANIZATION GUEST CIRCULATION The Houston Zoo’s exhibits will be reconfigured and arranged to create distinct zones, thematically organized to illustrate The confusing web of pathways that Zoo guests now experience will be replaced by a simplified circulation system that will biogeographic regions, providing opportunities for guests to experience encounters with animals in a naturalistic context. promote intuitive navigation. A clearly-defined central main pathway will connect our two public entrances, and each To the greatest extent possible, the animal communities, vegetation, geology and cultural elements in the exhibit zones will experience zone will be explored via loop pathways that begin and end on the main pathway. accurately reflect the habitat being represented, creating immersive environments with rich layers of interpretation.

LEGEND

CENTRAL SPINE

CIRCULATION LOOPS JOHN P. McGOVERN PANTANAL CHILDREN’S ZOO: TEXAS! (TRAIL OF THE JAGUAR)

AFRICA ANCIENT RELATIVES: JOHN P. McGOVERN BIRDS & REPTILES CHILDREN’S ZOO: TEXAS!

ET WEST RE ST ENTRY E G T ID EE R TR B S M PANTANAL E A G C ID R B M A C C E THE GROVE N T R AFRICA A L

S P I N E CYPRESS CIRCLE ANCIENT RELATIVES: BIRDS & REPTILES

CENTR GALAPAGOS/OCEANS AL SP GALAPAGOS/OCEANS IN GORILLAS OF THE E AFRICAN FOREST

NORTH ASIAN REFLECTIONS ENTRY ISLANDS AFRICA

MADAGASCAR H MADAGASCAR ER HE MA RM NN A PA NN RK PA DR RK IVE DR IVE ASIAN ELEPHANTS ASIAN ISLANDS

Scale: 1”=50’ HOUSTON ZOO - INTERPRETIVE/COLLECTIONS APPROACH Scale: 1”=50’ January 12, 2017 Studio Hanson|Roberts HOUSTON ZOO - VISITOR CIRCULATION PLAN 46 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG January 12, 2017 HOUSTON ZOO STRATEGIC PLANStudio Hanson|RobertsREPORT | 2017 47 Master Plan, Phase 1 While the Facilities Master Plan proposes changes throughout the Zoo’s entire 55-acre campus over a period of many years, we have identified four major projects to be accomplished during the timeframe of the Strategic Plan (2017–2022). These projects collectively comprise Phase 1 of the Master Plan.

48 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 49 MASTER PLAN, Phase 1

MASTER PLAN, PHASE 1: Over the next six years the Houston Zoo team will focus on reimagining four areas of the Zoo. These are Heart of the Zoo; Pantanal, Trail of the Jaguar; Ancient Relatives; and Galapagos, Reflections, Entry Plaza, which will open as part of our Centennial Celebration.

50 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 51 MASTER PLAN, Phase 1, Cont.

2018 & 2019: HEART OF THE ZOO • Create a central east-west pedestrian thoroughfare (“central spine”) to provide greater coherence to the campus, facilitate wayfinding and provide a series of new and improved guest amenities, including group event spaces, restrooms, food kiosks, shade and seating areas, and a thematic water play/sculpture area. • Transform Cypress Circle Café into a signature gathering place and primary Zoo restaurant. • Build a new Texas wetland exhibit for alligators, turtles, and waterbirds. • Renovate the orangutan habitat. • Expand and enhance the black bear habitat. • Conservation connection: The Texas Wetlands exhibit will engage visitors in the Zoo’s breeding, monitoring, rehabilitation, and release programs with local species of birds, reptiles, bats, and pollinators; students will use this exhibit in tandem with hands-on, in-the-field conservation work experienced through Zoo- led education programs.

52 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 53 LEGEND

EXHIBIT AREA MASTER PLAN, OTTER SOFT SUBSTRATE CATFISH, ELECTRIC EEL OR PIRANHA Phase 1, Cont. AND DIGGING BEACH (UNDER WATER VIEWING WITH OTTER BEYOND) SERVICE AREA OTTER CROSSING ABOVE EXTERIOR OFF EXHIBIT HOWLER MONKEY OTTER HOLDING & WATER HOLDING ABOVE AT SECOND FLOOR WATER FILTRATION (WATER FILTRATION AT FIRST FLOOR) SPECIAL LAWN AREAS JAGUAR OVERHEAD TRANSFER LANDSCAPE

CENTRAL SPINE VISITOR PATHWAY CART PARKING VISITOR PATHWAY JAGUAR OFF-EXHIBIT RETAIL, RENTALS, OR EVENTS SOUTH AMERICAN ENTRY NATURE PLAY

FOOD HOWLER MONKEY HOLDING 2020: PANTANAL, TRAIL OF THE JAGUAR AT SECOND FLOOR LEVEL JAGUAR EXISTING HOLDING TOILETS BUILDING • Transform a currently underutilized corner of the Zoo into a lush South BUILDINGS American tropical wetland habitat featuring jaguars, anteaters, monkeys, giant VEHICLE BRIDGE MESH ENCLOSURE river otters, birds, and tapirs, highlighting the Zoo’s scientific exploration and SPLIT LEVEL VIEWING BIOFILTRATION WETLAND wildlife protection efforts in this unique Brazilian environment. ANIMAL TRANSFER GIANT OTTER • Build a shaded Animal Encounter Hacienda for informal presentations by Zoo & HOWLER MONKEY SQUIRREL MONKEY staff and volunteers with animals from Latin America. • Conservation connection: The Zoo partners with on-the-ground conservationists TAPIR, CAPYBARA in Latin America to study and protect jaguars, macaws, tapirs, and other & GIANT ARMADILLO inhabitants of the Pantanal and other locations; the exhibit will strengthen the Zoo’s conservation investment by offering visitors and students a more immersive, EXTERIOR MACAW HOLDING BIRD HOLDING engaging experience of this ecosystem. MACAW AVIARY BUILDING

SERVICE ROAD

MULTI-SPECIES AVIARY BLACK CAIMAN

SERVICE AREA

MACAW AVIARY CLAY CLIFFS

BIRD HOLDING SOUTH AMERICAN AVIARY 54 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 55

Scale: 1”=20’ HOUSTON ZOO - PANTANAL - “TRAIL OF THE JAGUAR” January 12, 2017 Studio Hanson|Roberts MASTER PLAN, Phase 1, Cont.

2021: ANCIENT RELATIVES PHASE 1 • Build a new Avian Conservation Center which will relocate many of our birds into a series of new, lushly landscaped aviaries, which in the future will be part of a major hub of bird, reptile and amphibian exhibits based around habitat themes. • Relocate and re-imagine the Bird Garden, including interactive bird feeding opportunities for guests. • Build an incubation and rearing room for a behind the scenes experience. • Conservation connection: The new facility will directly enable the Zoo’s breeding programs for rare curassows and macaws as well as our signature program to breed and release Attwater’s Prairie Chickens, a highly-endangered Texas species.

56 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 57

SCALE: 1/2”=1’ HOUSTON ZOO - ANCIENT RELATIVES: BIRD GARDEN 0 1’ 3’ ‘6 JANUARY 12, 2017 Studio Hanson|Roberts LEGEND

UNDERWATER TUNNEL GALAPAGOS LSS BUILDING EXHIBIT AREA

SEA LION HOLDING SERVICE AREA MASTER PLAN, Phase 1, Cont. PELICAN HOLDING ISOLATION TANK WATER SEA LION CAVES FLOODED CAVERNS TANK VIEWING/RENTAL AREA SPECIAL LAWN AREAS FIRE TRUCK HAMMER HEAD (2) FAMILY TOILETS EXTERIOR TURN AROUND TORTOISE/IGUANA HOLDING LANDSCAPE REPTILE UNDERWATER NEAR SHORE REEF ROCK OR ANEGADA IGUANA CENTRAL SPINE VISITOR PATHWAY UNDERWATER VIEWING/RENTAL AREA VISITOR PATHWAY ISOLATION TANK RETAIL, RENTALS, OR EVENTS GIANT TORTOISE “A” NATURE PLAY GIANT TORTOISE “B” MANGROVE LAGOON ����������������������� FOOD ������� �������������������� SEA LION OVERLOOK GALAPAGOS TOILETS ISLANDS 2022: GALAPAGOS ISLANDS, INTERACTIVE THEATRICAL BUILDINGS ENTRY EXPERIENCE NORTH ENTRY PLAZA, AND REFLECTIONS MESH ENCLOSURE DEMONSTRATION BEACH • Create a unique and dramatic exhibit featuring sea lions, reef sharks, sea ANIMAL TRANSFER turtles, and barracuda as well as iguanas and a herd of giant tortoises, allowing ENTRY TO GALAPAGOS ISLANDS visitors to experience the magic and world-changing discoveries made in the Galapagos Islands. • Build a new Arrival Plaza to launch guests’ Zoo experience with comfort, ease and drama. EXISTING KIPP AQUARIUM • Develop a new Reflections Event Hall and Terrace, as well as a new casual café, and enhance the historic reflection pool and garden area. REFLECTIONS POOL FIRST AID STATION • Conservation connection: No place better illustrates the wonders of unique EXISTING species and biological processes, the delicate balance of ecosystems, or the ADMINISTRATION pressing need for conservation action than the Galapagos Archipelago. This exhibit will immerse visitors in that sense of place; highlight the Zoo’s ongoing NEW TICKETING 10-15 POINTS OF SALE field work with giant tortoises, birds, and marine animals; and serve as a jumping-off point for educational experiences. TICKET TAKING

RE-PURPOSED DONOR BRICKS

SECOND FLOOR EVENTS SPACE LAYERED SHADE SAILS

TOILETS RETAIL EXPANSION GRAB & GO, COFFEE DRINKS & ICE CREAM EXISTING RETAIL

SERVICE AREA COVERED STORAGE FOR SCHOOL GROUPS STROLLER RENTAL RANGER STATION PHOTO SALES EXPANDED SERVICE/FIRE ACCESS GATES 58 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG SCHOOL GROUP ENTRY HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 59 ENTRY SCULPTURE & WAYFINDING RELOCATED TRANSFORMERS

Scale: 1”=20’ HOUSTON ZOO - NORTH ENTRY January 12, 2017 Studio Hanson|Roberts Future Phases of the Master Plan Following completion of the Phase 1 Projects, the Master Plan proposes several other major renovations and additions. The composition and timing of these projects is not yet determined, but all have been envisioned to support the Zoo’s strategic direction while working with and adapting existing exhibits and site features.

60 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 61 MASTER PLAN, Future Phases

LEGEND

COMPLETE AFRICA EXHIBIT AREA

• The existing African Forest exhibits will be complemented by a series of new habitats, creating a self-contained loop beginning and ending on the central pathway of the Zoo. SERVICE AREA

Possible exhibits include forest habitats for okapi, primates and birds; a wetland area for hippos and shoebill storks; and a mixed savanna landscape with interconnected, WATER rotational environments for antelopes, cheetahs, small mammals and birds. A major new indoor/outdoor special events space, themed as an African safari lodge, will PARKING GARAGE SPECIAL LAWN AREAS overlook the expansive savanna habitat. The existing lion exhibit will be extensively renovated and augmented by associated habitats for mongoose and hornbills. LANDSCAPE

JOHN P. McGOVERN VETERINARY CENTRAL SPINE ASIAN ISLANDS CHILDREN’S ZOO: TEXAS! CLINIC VISITOR PATHWAY VISITOR PATHWAY • The Wortham World of Primates and nearby areas will be re-developed with two immersive habitat loops and an associated adventure loop, each of which will bring ET RETAIL, RENTALS, RE visitors on a journey of discovery from the forest floor into the canopy of the Asian rainforest. Featured species may include orangutans, siamangs, babirusa, otters, gibbons, T WEST FOOD OR EVENTS S E STORAGE G ENTRY PANTANAL NATURE PLAY clouded leopards, hornbills and tigers. The longest of the habitat loops will encompass and integrate the existing Asian elephant exhibits, which will be expanded to provide ID R COMMISSARYCOM B a more natural forest setting. M FOOD A C WEST ADMINISTRATION TOILETS THE GROVE AFRICA CE BUILDINGS MEDICAL CENTER ENTRY N T R MESH ENCLOSURE • When new public parking and pedestrian access is created southwest of the Zoo, per the plans developed by the Hermann Park Conservancy, a major re-invention of the A L ANIMAL TRANSFER Zoo’s Medical Center entry and nearby areas will be necessary. Increased volume of foot traffic will require new and expanded drop-off, ticketing, retail, food and guest S P I services facilities. The existing Twiga Courtyard, Carousel and giraffe exhibit/feeding areas will need to be renovated, creating both a major portal into the African region N E of the Zoo and a strong connection to the central Zoo pathway. CYPRESS CIRCLE

MCGOVERN CHILDREN’S ZOO: TEXAS! ANCIENT RELATIVES: GORILLAS OF THE CE BIRDSBIR & REPTILES NTRA GALAPAGOS • The McGovern Children’s Zoo, now approaching 20 years of operation, will be significantly renovated and be returned to its original concept, focusing on Texas AFRICAN FOREST L SP ISLANDS IN wildlife and farming. Hands-on experiences and nature play will be facilitated, and new exhibits may include habitats for black bears, cougars, ocelots, amphibians, E otters and sting rays. Two successful components of the current Children’s Zoo—the Swap Shop and the Bug House—will be refreshed and augmented as well. KIPP NORTH AQUARIUM ANCIENT RELATIVES: BIRDS AND REPTILES REFLECTIONS ENTRY ASIAN • This exhibit zone will combine collections from the current Tropical Bird House and Reptile and Amphibian House into one interpretive experience that celebrates the shared AFRICA ISLANDS evolutionary history of birds and reptiles, and showcases their amazing diversity. Immersive interior rainforest and desert biomes will be augmented by seasonal outdoor

exhibits of larger reptiles and birds, linked to the avian habitats developed in Phase 1. MADAGASCAR H ER MA NN PA MADAGASCAR RK DR IVE • The Natural Encounters building will be renovated (or replaced) to showcase the diversity of unique life found on the island of Madagascar, including lemurs, chameleons BROWN ASIAN EDUCATION and bats. ELEPHANTS CENTER

Scale: 1”=50’ HOUSTON ZOO - MASTER PLAN January 12, 2017 Studio Hanson|Roberts 62 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 63 Business Plan, Introduction The strategic business plan integrates the Zoo’s strategic and facility master plans to create a seven-year (2017–2023) financial and operational “roadmap” that will allow the Houston Zoo to remain a viable and sustainable community resource and asset.

64 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 65 BUSINESS PLAN, Introduction

THE STRATEGIC BUSINESS PLAN BUILDS UPON THE ZOO’S FINANCIAL AND OPERATIONAL STRENGTHS: • Annually attracting over two million visitors to the Zoo (excluding Zoo Lights attendance) while providing accessible options for all to visit the Zoo. • Promoting its conservation mission and compelling animal exhibits and experiences to create “reasons to visit” the Houston Zoo. • Leveraging its partnership and financial relationship with the City of Houston to promote the Zoo’s brand, attract new donors, partners and friends to the Zoo, and position the Houston Zoo as a leading cultural institution. • Generating net operating revenues from Zoo operations that offer: o High-quality visitor and animal experiences for a reasonable fee o Visitor stay-time to the Zoo (on average, more than three hours during the day and almost two hours for Zoo Lights) that provides value, new memories and high visitor satisfaction rating o Opportunities to re-invest, with new animal exhibits and public amenities while maintaining its significant infrastructure o Financial resources to support its depreciation expense With its Master Plan Phase 1 investment through 2022, the Zoo will be positioned to attract more than 3 million THE STRATEGIC BUSINESS PLAN LEVERAGES THE FOLLOWING: visitors to the Zoo—potentially 2.6 million from daytime • The financial investment for Phase 1 (2018–2022) of the Facilites Master Plan is estimated at $135MM, with the Zoo raising $105MM through a comprehensive capital Zoo visits and more than 400,000 from Zoo Lights. campaign and $30MM from HZI operations. However, the strategic business plan identifies a more • The Zoo will celebrate its Centennial over a three-year time-period (2021–2023). • The Zoo will build upon its partnership with the City of Houston to continue its re-investment in assets forever owned by the City—the City’s investment in the Zoo directly links conservative attendance baseline projection through to the Zoo’s financial operating success and its asset re-investment initiatives. 2023 with the intent that the Zoo could achieve annual • The Zoo’s visitor services partner (SSA) will continue to invest in quality amenities that provide memorable, engaging and fun venues for food, retail and catering operations attendance levels that exceed the baseline projections. while providing the Zoo with capex investments that strengthen the overall quality of a visit to the Zoo. • No new parking facilities are likely to be completed by 2023, but the Zoo will continue to explore potential new parking and access options. Since parking limitations will continue to impact the Zoo’s overall attendance growth, the Zoo must continue to explore remote parking options and locations that provide the Zoo visitor and member with easy access to the Zoo.

66 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 67 BUSINESS PLAN, Objectives and Attendance

OBJECTIVES INTEGRATED WITH KEY STRATEGIC & Total Attendance Projections MASTER PLAN OUTCOMES 2016-2023 1. Maintain the Zoo’s baseline attendance of 2.175MM visitors (2017), 3,500,000 excluding Zoo Lights; Zoo Lights baseline attendance is projected at 290,000 visitors based on the current program schedule and number of 3,300,000 nights utilized. 2. Attendance growth prior to the opening of the Pantanal and Galapagos 3,100,000 exhibits could be achieved by diversifying the daily use of the Zoo to 2,900,000 include evening events and programs during the summer/fall months. 3. Position the Zoo to generate at least 69%–71% of its total operating 2,700,000 expenses from earned operating revenues programs and initiatives. 4. Achieve and maintain an annual Net Operating Margin (prior to 2,500,000 depreciation) that is equal to or greater than the City’s Operating support +10%—approximately $10MM–$10.5MM in 2016—that can be utilized 2,300,000 to support the Zoo’s core strategic initiatives: 2,100,000 a. Capital Investment in master plan projects—50% ~$5MM b. Annual Maintenance expenses & investments—35%–~$3.5MM­ 1,900,000 (on average) 1,700,000 c. Strategic Plan Investments­—15% –~$1.5MM (on average;

strategic plan expenses to be prioritized by the Houston Zoo) 1,500,000 ELEPHANTS BUGS DINOSAURS HEART OF THE ZOO PANTANAL BIRD GARDENS GALAPAGOS GALAPAGOS 5. Continue to invest in the Zoo’s conservation mission programs/ initiatives and in its employees and staff by maintaining the following 2016 2017 2018 2019 2020 2021 2022 2023 expense thresholds:

a. Salary & Benefits ranging from 62% – 64% of total operating expenses Baseline Attendance Projections Optimistic Attendance Projections b. Field conservation programs and grants will be at least 3% of total operating expenses 6. Continue to invest in promoting and building awareness of the Zoo’s Total Attendance Projections compelling visitor experiences and of its mission-related programs The attendance graph above identifies the conservative baseline total attendance projections as well as the optimistic total attendance projections that could be by allocating on average 8.5% of total operating expenses for the achieved—with optimal weather, we believe the Zoo could attract 3.180MM visitors with opening of the Galapagos exhibit in 2022. purchase of marketing, branding and capacity building initiatives, excluding salaries and related expenses. We project 2017 baseline Daytime Attendance to be 2.175MM. With the opening of the Pantanal Exhibit in 2020, Daytime Attendance is anticipated to increase by 5.7% to 2.3MM. With the opening of the Galapagos Exhibit in 2022, a significant increase of 11%–15% is projected (250,000–354,000 additional visitors, with 50% of these being members making additional visits).

68 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 69 BUSINESS PLAN, Admission

ADMISSION FEE STRATEGIES • General Admission Fees will be positioned to be remain under the cap allowance as defined by the Zoo’s Operating Agreement with the City of Houston, and will continue Overview of Admission Fees to rise incrementally in keeping with increased operational expenses and improved guest experience. 2011-2016 • With the opening of the Galapagos exhibit in 2022 (major new animal and visitor experiences to serve as the capstone of the Zoo’s Centennial celebration), admission fees will increase to align admission fees with the increased value created by new high-quality, engaging experiences.

1,200,000 $18.00 • On-site admission sales and pre-sales will promote the Total Experience Fees (combo pricing) with less focus on the single general admission fee purchase. Pre-sales are not discounted but will promote easy entry and access to the Zoo. $16.00 • Total Experience Fees will provide unlimited usage on day of purchase. 1,000,000 $14.00 • The Zoo will continue to promote on-site membership sales both at the entry and as part of the Zoo experience. • The Zoo will continue to offer peak season and non-peak pricing options, as well as Free Tuesdays during the non-peak season to ensure the Zoo is accessible to the community. 800,000 $12.00 • The Zoo will continue to test and evaluate pricing/value combinations to further leverage admission and membership revenues.

$10.00 • Valued-Added fees in 2020 and beyond could include food and retail incentives. 600,000 $8.00 ZOO LIGHTS ADMISSION FEES

400,000 $6.00 • With its continued popularity, strong two-hour stay time and high visitor satisfaction, we would recommend that admission fees to Zoo Lights continue to increase with a significant increase in 2022 to celebrate the Zoo’s Centennial and new Galapagos exhibit. $4.00 • The Zoo will continue to test and evaluate pricing options with discounts for members and prime/value pricing options. 200,000 • We have assumed that Zoo Lights will operate 52–60 nights annually with annual visitation in the 290,000–320,000 baseline range. $2.00

0 $0.00 COMBINATION/EXPERIENCE ADMISSION FEES As a visitor experience and financial strategy, the Zoo will focus on positioning and testing the combination/experience ticketing at the point of admission with less focus 2011 2012 2013 2014 2015 2016 on general admission pricing. The combination/experience fees reflect a discount on general admission fees, promote online ticketing to ease access to the Zoo and offer value for purchasing the all-in-one ticketing option. The combination/experience pricing fees would be seasonal and not offered during the non-peak visitation months of Total Paid Adult Child Senior January–February and October–December (excluding special events and Zoo Lights experiences). Of paid visitors (~50% of total Zoo visitors) we anticipate that by 2022 (Galapagos opening) over 50% of paid visitors will be purchasing a combination or experience ticket.

Paid Visitation Trended Against Admission Fees The history represented in the Table above supports the likely success of future admission fee increases without negatively impacting total attendance. It is important to recognize that of the Zoo’s total visitors (~2.2MM) only 30% of the total visitors pay full-price…others are groups, members, discounts and free visitors. With its future total Zoo attendance baseline of 2.175MM visitors and its continued investment in animal and visitor experiences, the Zoo can annually increase its general admission fees without any negative impact on its attendance—industry market research data supports this finding.

70 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 71 BUSINESS PLAN, Revenues and Expenses

Operating Revenues Operating Expenses

MEMBERSHIP CONTRIBUTIONS & SPONSORSHIP SALARIES/BENEFITS OTHER OVERHEAD OPERATING EXPENSES • Total membership households will remain stable at 58,000 households • With the Zoo’s ongoing capital campaign, we would anticipate that • Staffing plan includes 447 permanent full-time staff positions for 2017, • Represents approximately $9MM of the Zoo’s total operating expenses (total (2017–2019) with only minor growth as new/major exhibits will not contributions and sponsorships supporting operations will grow 7.5% including new positions converted from “contract labor” in 2016. operating expenses $43MM in 2017). We have assumed that overhead be opened until Pantanal in 2020 and then Galapagos in 2022. The annually, mainly due to the Zoo’s sponsorship initiatives, as it has a strong • New full-time staff positions identified within the strategic plan will be funded expenses will increase by 2% annually, except for IT expenses (~$1.1MM) Pantanal opening will be a “mini-blockbuster” with a projected 3% increase brand within the Houston region. via the “cash flow model.” that we project will increase by 5% annually due to the ongoing invest in the in household members. With the Galapagos opening and the Zoo’s Zoo’s communication and technology infrastructure. • Annually, total salary expenses are adjusted by 3% through 2019 and then Centennial celebration, we anticipate an 8% growth (5,000 new members) CONSERVATION GRANTS 2% due to compounding to reflect a salary pool available for distribution. in membership households as the Galapagos exhibit will be a significant call • Includes a portion of annual Conservation Gala revenues, programmatic CONSERVATION & EDUCATION to action for new members. grants and conservation sales including Conservation bracelets. Programmatic • Salaries and Benefits will continue to be approximately 61%–63% of total • Annual investments in conservation (~$3.4MM in 2017) is directly linked grants are anticipated to increase with the hiring of a Development grants operating expenses. to funds received, generated, earned and/or released from restrictions. For SPECIAL EVENTS writer in 2017. While the Conservation Gala nets approximately $900,000 • Employee Benefits are projected at 24% of total salaries. planning purposes, we have assumed that the Zoo will annually investment • Includes Zoo Lights ($4.8MM in revenues in 2017); facility rentals and annually, a large portion of these receipts are held as a restricted fund and approximately $3MM in conservation-related programs, grants and initiatives. Feast with the Beasts ($490K in 2017). In future years, facility rentals could released as conservation program expenses are incurred. MARKETING have significant growth with new facilities, sales programs and regional • Includes advertising, public relations and graphics expenses and any DEPRECIATION economic recovery. In addition, if a second Feast with the Beasts, ”Zoo ASSETS RELEASED advertising for seasonal attractions such as Bugs, Legos and/or Dinos. • Annually we have allocated $7.5MM as the depreciation expense through Nights” or additional special events are offered, new incremental revenues • Will fluctuate annually based on funding (Conservation Gala, Foundation Annually, we will allocate 8%–8.5% of the Zoo’s total operating expenses 2019; increasing to $8.2MM in 2020 and 2021 for the Pantanal opening and would be generated with increases in the Zoo’s off-peak visitation. support and restricted support from donors); annually, revenues will match for marketing-related expenditures (non-salaries). The AZA’s benchmark is then increasing to $9MM in 2022 and 2023, to reflect the new Galapagos expenses with only minor unrestricted operating funds available. For between 5%–7% of total operating expenses for marketing-related activities, exhibit being opened. Since depreciation expense is a non-cash allocation, OTHER REVENUES planning purposes, we would anticipate the assets would remain in the but given the Houston Zoo’s investment in visitor experiences and on-site we have identified the accrued expense for reporting purposes only. • Primarily includes Carousel and Giraffe feeding revenues. We have $2.25MM range, annually. programs and its Centennial celebration, additional advertising/branding assumed that the utilization and per cap will remain stable, especially resources will be required to maintain the attendance baseline of at least CITY MANAGEMENT FEE with the combination/value pricing. Carousel fees could increase in 2022 2.2 MM Zoo visitors. as part of the Zoo’s integrated pricing strategy with the opening of the • We have assumed that the contractually-required CPI adjustment would be Galapagos exhibit. 2-3% annually, with the City of Houston continuing to invest and re-invest in the Zoo and its assets. Any changes in the City’s funding support to the Zoo—unlikely­ due to the existing management agreement between HZI and the City—could be compensated for through admission fee increases and/or the reduction of the Zoo’s aggressive discount initiatives.

72 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 73 Planning Process and Participants Through the most engaging and inclusive planning process in the Zoo’s history, hundreds of people from our board of trustees, staff and community participated in shaping the plans for the future Houston Zoo.

74 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 75 PLANNING, Planning Process and Participants

BOARD OF DIRECTORS Strategic Planning Committee Strategic Planning Process 2016 Stacy Methvin Robert Graham Co-Chair Winell Herron Roxanne Almaraz Gillian Hobson More than 420 Philip Bahr Tandra Jackson STAFF, VOLUNTEERS January February March E. William Barnett Jill Jewett Survey to Staff, Volunteers Board of Directors and Work Sessions on Mission/Vision/ AND BOARD MEMBERS Monica Benton Peggy Kostial and Board of Directors Staff Workshop: Identified Themes Guiding Principles PARTICIPATED IN SURVEY Joe Cleary Neal Manne Roberto Contreras Bruce Niemeyer Michael Cordúa Suzanne Nimocks Joshua Davidson Sara Ortwein APPROXIMATELY June Joseph Dilg Jim Postl May April Jeff Dudderar Task Force Workshop: Agreed on 100 Staff Alexandra Pruner Strategic Priorities Work Sessions 14 Strategic Priorities: Task Forces Assigned PARTICIPATED IN AT LEAST ONE 7 Strategic Priorities Anne Duncan Brent Smolik STRATEGIC PRIORITY TASK FORCE Robert Edwards Stephen Trauber Jenny Elkins Molly Voorhees Kathleen “Kat” Gallagher Randa Duncan Williams Dr. Amy C. Garrou Austin Young Dr. Cullen Geiselman July August September 12 Members Staff Teams Define Goals, Strategies Strategic Plan Approval by OF THE BOARD OF DIRECTORS Marty Goosen Preliminary Report Out of 7 Priorities and Objectives HZI Board of Directors PARTICIPATED IN STRATEGIC PRIORITY TASK FORCES HOUSTON ZOO Strategic Planning Committee Lee Ehmke Dr. Adrian Fowler December November October CEO Leslie Forestier Integration of Business Plan with Presentation of Master Plan to Business Plan and Master Plan 80 meetings­ David Brady Chris Lyons Master Plan and Strategic Priorities Board of Directors Refinement INCLUDING WORK SESSIONS, Co-Chair Paul McAuley BOARD MEETINGS AND Lisa Marie Avendaño WORKING GROUPS HELD Kevin Pope Renee Bumpus Peter Riger Adrian Cavazos Melanie Sorensen Nick Espinosa Christine Warren Kristin Finney

76 THE HOUSTON ZOO | WWW.HOUSTONZOO.ORG HOUSTON ZOO STRATEGIC PLAN REPORT | 2017 77 THE HOUSTON ZOO 1513 CAMBRIDGE STREET | HOUSTON, TEXAS 77030 www.houstonzoo.org

The Houston Zoo has proudly printed this strategic report on 100% post-consumer recycled paper with soy-based inks. Please recycle.